Tasty, the operator of brands including Wildwood and Dim T, has made 284 members of staff redundant, representing approximately 32% of its total workforce.
In an update filed with the London Stock Exchange, the group said it had come to the difficult decision that, due to the anticipated drop in footfall due to continuing Covid-19 restrictions, "staff numbers need to be reduced accordingly". The redundancies were across both restaurants and head office.
The group said: "Clearly, this decision has been very difficult for everyone involved and throughout this process our priority has been to support those that have been affected.
"The board of directors is exploring ways to minimise costs and to strengthen the balance sheet including investigating the possibility of new debt and/or equity capital and also discussing terms with landlords and trade creditors."
Tasty reported a reduction in losses after tax to £800,000 last year, having disposed of five sites and restructured its finance and operational teams. The group has 50 Wildwood sites and five Dim T restaurants across the UK.